Commonly known for its troubled past and political instability, the Western Balkans have quietly made a name for themselves in the tech industry over the past decade – with their developing IT sector seeking to attract the attention of investors and tech companies global. The region’s booming tech industry promises to bring a bright future to the Western Balkan countries, where well-paid, high-quality jobs have been created. rare in the past. It may also be exactly what the region needs to catch up with other EU member states in the region – at least until full EU integration for all is achieved. carried out.
Hope comes in the form of a young, talented population eager to use their skills and resources to create innovative solutions that can change the landscape of the region’s technology industry. Every year, around 10 percent of the total number of graduating students from the six third countries of the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia) come from the ICT sector – a figure that is not that will increase as the IT sector becomes an increasingly popular choice of work.
Driving the growth of the region’s IT sector
In this regard, EU member states from the wider Balkan region, such as Romania, Bulgaria and EU member Croatia, have emerged as the torchbearers of the tech industry to follow by the rest of the Western Balkans – especially after seeing several of their national companies reach ‘unicorn status” over the past two years. “Unicorn companies” are companies that have reached a valuation of $1 billion or more, and this status is considered a major milestone for any startup.
The achievements of companies such as UiPath in Romania, Payhawk in Bulgaria and Infobip in Croatia not only demonstrate the potential of these companies themselves, but also promise to further stimulate the growth of the region’s IT sector. These companies and several other international technology companies have also establish a foothold in the Western Balkanswhere they can nurture the region’s tech talent.
Unlike the rest of the countries that are part of the EU, those that do not yet face a major challenge compared to their counterparts.
Additionally, tech startups in the region have been able to take advantage of emerging technologies such as artificial intelligenceblockchain, fintech and gameand they have attracted diverse investments – which, once again, means jobs and long-term growth.
However, unlike the rest of the countries that are part of the EU, they still do not face a major challenge compared to their counterparts: the lack of accessible private capital to support the development of their business. This challenge is multifaceted. While a limited number of investors focus on Western Balkan markets, other regional funds simply ignore the potential of startups in the region – or choose to ignore it.
Bridging the gap
Until the region is fully integrated into the EU (which could take decades), initiatives such as Open Balkan, which has been spear in October 2019 by the leaders of Serbia, Albania and North Macedonia with the aim of strengthening economic ties between the Western Balkan countries, may prove to be a temporary solution.
By deletion Due to trade barriers and increased cross-border trade, the initiative is expected to simplify business collaboration between regional IT companies. In turn, this will allow companies to share their resources, knowledge and expertise, and develop more innovative and competitive products and services. This increased cooperation will also help attract more foreign investment to the region’s IT industry, which would be seen as a larger – and more stable and predictable – market than individual countries’ markets. This would help increase the flow of capital to the industry and create more growth opportunities for startups and SMEs (small and medium enterprises).
Finally, the initiative is also expected to facilitate the mobility of qualified IT professionals within the region, thereby increasing talent availability, improving skills development and strengthening knowledge sharing.
The development of IT industry and its potential common market in the Balkans could also help diversify the region’s economy, which traditionally relies on sectors such as agriculture, tourism and manufacturing.
As Western Balkan countries and their economies continue to grow, they could also catch up with the region.‘s EU member countries.
Governments in the region are also seeking to attract more domestic and international IT companies to invest in their economies through tax incentives. This will spur increased investment by venture capitalists and investors in promising startups and businesses, once again leading to the creation of more jobs and retention of local talent – thereby reducing the need for talent from seek opportunities abroad.
Although the Balkan region may have had a difficult past, thanks to IT, the future could prove bright as the region’s talented professionals, low costs and favorable government policies strive to creating a fertile environment for tech startups to thrive. And as the Western Balkan countries and their economies continue to develop, they could also catch up with the region’s EU member countries – until their full integration into the European Union is achieved.